Are you tired of not being able to afford to buy car insurance? You’re in the same situation as most other car owners in Texas. Popular companies such as Progressive, GEICO and Farmers Insurance continually hit you with TV and radio ads and it can be hard to avoid their marketing magic and effectively compare rates to find the best deal.
You should take the time to shop coverage around occasionally because prices are usually higher with each renewal. Despite the fact that you may have had the best price two years ago there is a good chance you can find better rates now. Forget anything you know (or think you know) about auto insurance because I’m going to let you in on the secrets to the proper way to find the best coverage while lowering your premiums.
Smart Consumers Save More
It’s important that you understand some of the elements that come into play when calculating the rates you pay for auto insurance. Understanding what controls the rates you pay empowers consumers to make smart changes that could result in big savings.
The list below includes some of the factors used by your company to calculate premiums.
- More miles equals more premium – The more you drive in a year the more you’ll pay to insure your vehicle. Almost all companies charge to insure your cars based on their usage. Cars and trucks used primarily for pleasure use receive lower rates than those used for commuting. Double check that your auto insurance policy is showing the correct driver usage, because improper ratings can cost you money.
- Never let your coverage lapse – Not having insurance is a misdemeanor and you will pay a penalty because you let your coverage have a gap. Not only will you pay more, getting caught without coverage will get you a license revocation or jail time.You may have to prove you have insurance by filing a SR-22 with the Texas department of motor vehicles.
- How credit affects auto insurance rates – Credit history is a huge factor in your rate calculation. Therefore, if your credit rating is not that good, you could potentially save money when insuring your by repairing your credit. Consumers who have high credit ratings tend to be less risk to insure than those with lower credit scores.
- Add-on coverages can add up – There are a lot of add-on coverages that can waste your money when buying auto insurance. Insurance for rental car reimbursement, accident forgiveness and membership fees are examples of these. These may sound like a good investment when talking to your agent, but your needs may have changed so eliminate the coverages to reduce your premium.
Don’t miss out on these money-saving discounts
Car insurance is not cheap, but discounts can save money and there are some available to cut the cost considerably. Most are applied at quote time, but a few need to be asked for before you will receive the discount. If you don’t get every credit possible, you’re just leaving money on the table.
- Sign Online – A handful of insurance companies give back up to $50 for buying your policy on their website.
- Service Members Pay Less – Being deployed with a military unit could be rewarded with lower premiums.
- Life Insurance – Companies who offer life insurance give better rates if you take out auto and life insurance together.
- Anti-lock Brake Discount – Vehicles equipped with ABS or steering control can avoid accidents and qualify for as much as a 10% discount.
- No Charge for an Accident – Certain companies permit an accident without raising rates as long as you don’t have any claims for a particular time prior to the accident.
- Multi-policy Discount – When you combine your home and auto insurance with one company you could get a discount of 10% to 20% off each policy.
Keep in mind that most discounts do not apply to all coverage premiums. Some only reduce the cost of specific coverages such as physical damage coverage or medical payments. Just because it seems like having all the discounts means you get insurance for free, it just doesn’t work that way. But any discount will cut the cost of coverage.
Buying car insurance locally
Some consumers just want to talk to a local agent and that is OK! Agents can point out coverage gaps and help in the event of a claim. The biggest benefit of comparing rates online is that you can obtain the best rates but also keep your business local. And providing support for local businesses is definitely important in Humble.
Once you complete this quick form, your insurance coverage information is instantly submitted to agents in your area who will return price quotes for your coverage. There is no reason to even leave your home as quotes are delivered directly to your email. How’s that for easy!
Multiple types of car insurance agents in Humble
When researching an insurance agent, there are two types of insurance agents that differ in how they can insure your vehicles. Agents are either captive or independent. While both can write coverage properly, but it’s worth learning how they are different since it may influence buying decisions.
Independent Agents (or Brokers)
Independent insurance agents are not employed by any specific company but rather can write business amongst many companies and potentially find a lower price. If you are not satisfied with one company, your agent can switch companies and you won’t have to switch agencies.
When searching for an agent, we recommend you include at least one independent agent to get the best comparison.
Shown below are Humble independent insurance agencies willing to provide pricing information.
Baker Insurance and Investment – 7840 Fm 1960 Rd E # 411 – Humble, TX 77346 – (281) 812-1871
Mark Haynes Agency – 7211 Fm 1960 Rd W # 170 – Humble, TX 77338 – (281) 548-1602
Germania-Wilkinson Insurance – 10203 Birchridge Dr – Humble, TX 77338 – (281) 446-0467
Insurance Agency-Sw – 302 N Houston Ave – Humble, TX 77338 – (281) 446-8655
Cedric O Johnson Agency – 19333 Highway 59 N # 160 – Humble, TX 77338 – (281) 441-3338
Captive Insurance Agents
This type of agents work for only one company such as Liberty Mutual, State Farm, Allstate and AAA. These agents are unable to provide prices from multiple companies so they have no alternatives for high prices. Captives are well schooled in insurance sales and that can be a competitive advantage.
Below is a list of captive agents in Humble that are able to give comparison quotes.
Bill Chapman State Farm Ins – 9684 Fm 1960 Bypass Rd W – Humble, TX 77338 – (281) 548-9903
Allstate Insurance – 4451 Fm 1960 Rd E # 472 – Humble, TX 77346 – (281) 852-6500
To view a complete directory of Humble captive agencies, click here to link.
Selecting an auto insurance agent should depend on more than just the price. Here are some questions to ask:
- Can glass repairs be made at your home?
- How long have they worked with personal auto insurance coverage?
- Do clients work directly with the agent or are most inquiries handled by a CSR?
- How are they compensated?
- Do they carry Errors and Omissions coverage?
- If you have an accident, are you able to get your vehicle repaired at the shop of your choice?
- Are you getting all the discounts the company offers?
Once you have acceptable answers to your questions and locked in a price quote, you’ve probably found a car insurance agent that can properly insure your vehicles.
Ads can be misleading
Texas consumers can’t ignore all the ads for cheaper car insurance from the likes of State Farm, Allstate and GEICO. They all make an identical promise that you can save if you change your coverage to them.
But how can every company make almost identical claims? It’s all in the numbers.
Different companies can use profiling for the type of customer that is profitable for them. An example of a profitable customer might be between 30 and 50, has no prior claims, and has great credit. Any driver who meets those qualifications gets the lowest rates and therefore will pay quite a bit less when switching companies.
Drivers who fall outside the “perfect” profile must pay higher prices which usually ends up with the customer not buying. The ad wording is “people who switch” not “people who quote” save that much money. That’s the way companies can make those claims.
This illustrates why you should get as many comparisons as possible. You cannot predict which auto insurance company will fit your personal profile best.
Do I just need basic coverages?
When buying proper insurance coverage, there is no “best” method to buy coverage. Every situation is different and a cookie cutter policy won’t apply. Here are some questions about coverages that could help you determine if your situation could use an agent’s help.
- Do I have coverage when pulling a U-Haul trailer?
- Can my teen driver be rated on a liability-only vehicle?
- Will my vehicle be repaired with OEM or aftermarket parts?
- Am I covered when driving on a suspended license?
- Do I need PIP (personal injury protection) coverage in Texas?
- Who is covered when they drive my vehicle?
If you can’t answer these questions but you think they might apply to your situation, you might consider talking to an insurance agent. To find lower rates from a local agent, complete this form or go to this page to view a list of companies. It’s fast, free and may give you better protection.
Find out more about auto insurance
Additional auto insurance information can be read on the website for the Texas Department of Insurance. Click here for link. Visitors are able to download brochures, read consumer alerts, and report car insurance fraud.
The best insurance company isn’t always the cheapest
In this article, we covered some good ideas how you can shop for auto insurance online. It’s most important to understand that the more price quotes you have, the better chance you’ll have of finding lower rates. Drivers may discover the biggest savings come from the least-expected company. Smaller companies can often provide lower rates in certain areas than the large multi-state companies such as Allstate or State Farm.
Cost effective auto insurance can be bought from both online companies as well as from independent agents in Humble, so you should be comparing quotes from both in order to have the best price selection to choose from. Some insurance companies don’t offer online quoting and many times these small, regional companies only sell through independent insurance agents.
As you shop your coverage around, it’s not a good idea to reduce coverage to reduce premium. There are a lot of situations where someone sacrificed liability coverage limits and found out when filing a claim they didn’t purchase enough coverage. Your goal should be to purchase a proper amount of coverage for the lowest price.